Did you know that three-quarters of Canadians have some form of debt they’re dealing with? If you need money fast, you’re likely considering every possible option.
One solution might be installment loans. But precisely what are these types of loans? And what are the benefits of installment loans? If you want to learn the answer to these questions and more, you’re in the right place.
In this guide, we’ll teach you everything you need to know about these types of loans. That way, you can decide for yourself whether or not they’re suitable for your specific financial circumstances.
What Are Installment Loans?
Before we get started, it’s important to understand exactly what installment loans are. When you take out money with an installment loan, you will receive it all in one lump sum.
Then, you will pay the loan back with equal portion payments. The frequency with which you pay back the loan will depend on the lender. Sometimes they can be monthly; other times, they can be biweekly.
Each time you make a payment, it’s known as an installment (hence the name). This payment includes a portion of the principal as well as any interest you owe for taking out the loan.
Installment loans can either be secured or unsecured. Secured loans will require an asset that you will need to put up as collateral if you can’t make your payments.
Unsecured installment loans don’t require an asset, but they do tend to come with higher interest rates.
Benefit #1: Fast Money
Most loans can take days or even weeks to hear back from. If you’re in need of money now, then these types of waits simply won’t do. The good news is that many installment loan providers work quickly.
If you’re approved, you can get funds deposited to your bank account on the same day that you applied. This is thanks to the fact that many lenders provide an easy credit check which can vastly speed up the application process.
This makes most installment loans good options for people that are hit with unexpected bills or expenses.
Benefit #2: You Can Borrow A Lot
Since installment loans are paid for over a period of time, lenders tend to feel more comfortable offering higher borrowing limits. For example, here at Tekaloan with offer short-term, fast loans that reach up to $1,000.
This is a great option if you need a large amount of money to pay rent or a bill. It also means that you don’t need to apply for multiple loans to get the amount of money that you need.
Benefit #3: Applying Is Quick and Easy
In the past, you would need to drive to the nearest bank to apply for an installment loan. But, thanks to the internet, that’s becoming a thing of the past.
These days you can apply for these loans quickly and easily online. This is especially true if you go with a lender like Tekaloan, which has a simplified application process.
All you need to do is answer a few simple questions; then, you’ll get a response on the same day. No need to spend hours on a form or find a ride to the bank. Plus, most options are available 24/7.
So, you can apply at any time during the day or night. No more adhering to the strict 9-5 schedule of most banks thanks to online loans.
Benefit #4: Available For People With Bad Credit
Sadly, recent research shows that roughly 26% of Canadians are living paycheck to paycheck. If you fall into this category, the odds are you don’t have the best credit.
Often this can prevent you from getting the loans you need. The good news is that there are installment loans for every different credit rating. There are a variety of lenders that cater to people with poor credit.
These lenders tend to look at factors besides your credit, like pay slips and other documents. Plus, if your credit is low, then an installment loan can improve it.
However, keep in mind that this is only true if you make all of your payments on time. If you fall behind on payments, it can do more harm to your credit score than good.
Benefit #5: More Flexible Payments
Installment loan providers tend to offer their lendees a lot of different options when it comes to payment schedules. Here at Tekaloan.com, we allow you to choose between weekly, biweekly, bimonthly, and monthly payments.
So, whatever options work best, we can accommodate you. Maybe you’re waiting until your next paycheck to pay the loan back.
Installment loans are good options for putting off payments until you’re ready. Some lenders will even allow you to pay off the loan early if you have the financial means to do so.
Benefit #6: You Can Spend the Money How You Want
This is another layer of flexibility that comes from installment loans. You can spend the money from the loan on whatever you want. Whether it’s groceries, rent, bills, student debt, or any other payments, you’re covered by the installment loan.
However, it’s important to use these types of short-term loans only for emergencies. The high-interest rates mean that you shouldn’t be taking out installment loans on things you don’t really need.
So, just save up to buy that Playstation 5 you’ve been thinking about. Taking out an installment loan to pay for it isn’t a good idea.
Ready For Simplified Short-Term Loans? Contact Tekaloan
We hope this article helped you learn more about the benefits of installment loans. Sadly, it’s important to remember that not all installment loan providers are created equally.
Some provide predatory loans that are meant to keep you in debt. So, ensure you find a provider like Tekaloan that makes things quick, easy, and safe.
We give you plenty of flexibility in terms of paying back any money you borrow. So, if you’re ready to receive your loan, contact us today.